JAKARTA – US exchanges are extending the weekly upward trend as market participants speculate about the possibility of implementing regional quarantine or lockdown. Speculation took place amid hopes of finding a corona virus drug (Covid-19).
As reported by Bloomberg , the S&P 500 Index is heading for an increase in the second week of April – the longest duration since mid-February 2020 – after the United States Government issued guidelines to restart the economy.
The S&P 500 index rose 1.36 percent up to 10.22 New York Time. The Dow Jones Industrial Average also gained 1.47 percent. The Nasdaq Index also started trading an increase of 0.66 percent.
Gilead Science Inc. shares rose after a report launched a group of patients “seeing a rapid recovery from symptoms of fever and breathing”.
Boeing Co. shares also jumped along with plans to restart jet making in Seattle next week.
This week arguably ended with a sweet note for the stock market after the White House issued guidelines for the states to consider whether they ordered to stay at home or impose social restrictions.
The US government is indeed under pressure when 22 million people apply for unemployment benefits. In other words, the record has eliminated job creation for a decade.
Meanwhile, China pledged stronger policies, including a reduction in the benchmark interest rate after the Covid-19 pandemic led China to the first economic contraction in decades.
“Whatever we can do to start out of this economic valley will cause the market to react positively,” said Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management.
He added, “Treatment or vaccine is the final step. Whatever we can do to shorten the duration of this [pandemic].”
Mike Swell, Co-Head of Global Portfolio Management Goldman Sachs Asset Management said the rally that took place today, Friday (4/17/2020) showed there was a large amount of funds on the sidelines of people’s great desire to invest in recovery the economy.
“Now there is a little road map, I think people are looking for good news to try to participate in recovery,” he said.
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